Lagos State Governor, Babajide Sanwo-Olu, and the Chartered Institute of Bankers of Nigeria (CIBN) have called on financial institutions to improve access to affordable capital for businesses, particularly manufacturers and small enterprises, as Nigeria seeks to accelerate industrial development and economic transformation.
The call was made at the 2026 CIBN Fellowship Investiture Ceremony in Lagos, where stakeholders emphasised the need for banks to translate the benefits of the recent recapitalisation exercise into increased financing for productive sectors of the economy.
Sanwo-Olu said the banking sector had reached an important stage following the recapitalisation exercise, which raised N4.65 trillion in fresh capital.
However, he maintained that the success of the exercise would depend largely on how effectively the additional funds were channelled into businesses, industrial expansion and employment creation.
He identified access to affordable, long-term financing as one of the major challenges confronting Nigerian businesses, noting that manufacturers require substantial funding to acquire machinery, expand production and compete in international markets.
According to him, agricultural businesses also need adequate financing to improve storage, processing and distribution, while emerging enterprises require accessible credit facilities to establish and expand their operations.
The governor urged banks to develop financing structures that reflect the realities of businesses, particularly industries that require considerable investment and longer periods to generate returns.
He also highlighted investment opportunities in Lagos, including developments around the Lekki Deep Sea Port, industrial activities along the Lekki corridor and infrastructure projects, noting that stronger financial sector participation could attract private investment and stimulate economic activities.
Sanwo-Olu further stressed that government intervention alone could not address the country’s financing challenges, calling for stronger partnerships among financial institutions, government and private investors.
In his remarks, CIBN President and Chairman of Council, Dele Alabi, said the recapitalisation programme had strengthened the banking industry’s capacity, with 33 banks meeting the new capital requirements.
He, however, maintained that the additional capital must translate into tangible economic benefits, including expanded businesses, improved infrastructure, industrial development and sustainable employment.
Alabi identified manufacturing, agriculture, energy, infrastructure and technology as critical sectors requiring increased financing to support Nigeria’s economic transformation.
He also called for a coordinated financing framework involving commercial banks, pension funds, insurance companies and development finance institutions to improve access to long-term capital and reduce lending risks for businesses.
Former Group Chief Executive Officer of FBN Holdings, Bello Maccido, also urged banks to reconsider their investment priorities and increase lending to the real sector rather than concentrating excessively on treasury instruments.
He expressed concern over the allocation of banking assets, citing a World Bank report which indicated that treasury bills increased from 18 per cent to 22 per cent of banks’ total assets after the recapitalisation exercise, while loans remained at 22 per cent.
Maccido argued that lending to businesses could provide banks with multiple revenue streams through interest income, foreign exchange earnings and transaction-related fees, while supporting productive economic activities.
He urged financial institutions to prioritise manufacturing, industrial parks and other sectors capable of strengthening domestic production and creating employment opportunities.
The discussions highlight the growing expectation that Nigeria’s strengthened banking system should play a more direct role in financing businesses and expanding productive capacity.
With access to affordable financing remaining a major concern for enterprises, the ability of banks to convert their increased capital base into credit for viable businesses will be important to the country’s industrialisation and broader economic development.
source; The Guardian
Sanwo-Olu urges banks to deploy N4.65tr new capital for industrial growth
